Where I would invest $20,000 in ASX shares

Webjet Limited (ASX:WEB) and these ASX shares could be great options for a $20,000 investment…

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At the weekend I looked at how successful $20,000 investments in a number of popular ASX shares had been over the last 10 years.

Whilst picking market-beaters is no easy feat, I believe the three shares listed below have the potential to achieve outsized returns over the next decade.

Here's why I would invest $20,000 into them in 2020:

SEEK Limited (ASX: SEK)

I think this job listings giant could be a great option for a $20,000 investment. SEEK has been investing heavily in growth opportunities in recent years. Although this has put pressure on its profit margins and slowed its earnings growth, I expect it to accelerate once its investment phase is over. But this short term pain is certainly worth it for the potential long term gains. That's because these investments are expected to play a key role in the company achieving its aspirational revenue target. SEEK is targeting revenue of $5 billion by FY 2025. This will be a big lift on the revenue of $1,537.3 million it posted in FY 2019.

Serko Ltd (ASX: SKO)

Serko is an online travel booking and expense management provider which could be another great place to invest $20,000. Serko's software continues to grow in popularity with businesses and corporate travel bookers. This has driven very strong revenue growth in recent years. For example, in FY 2019 the company posted a 28% increase in total operating revenue to NZ$23.4 million. The good news is that this strong form has continued in FY 2020, with management confident in hitting its operating revenue growth guidance of 20% to 40%. I believe this strong growth can continue for some time to come thanks to its sizeable global market opportunity, quality products, and close relationship with industry giant Booking.com.

Webjet Limited (ASX: WEB)

A final share to consider investing $20,000 into is Webjet. I believe this leading online travel agent could continue providing strong returns for investors over the next few years. This is due to the quality and diversity of its offering, the continued shift to online booking, its rapidly growing WebBeds business, and its focus on margin expansion. So, if the company isn't taken over by a private equity firm in the coming months, I think it will be a great long term option for investors.

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Serko Ltd. The Motley Fool Australia has recommended SEEK Limited, Serko Ltd, and Webjet Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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